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Decommissioning Challenge Fund for region's projects

Published: 28/11/2018

Twelve projects across Scotland - five of which from the Highlands and Islands - will be offered a share of £2.5 million in the third round of the Decommissioning Challenge Fund awards.

The DCF supports infrastructure improvements and innovation to deliver decommissioning of North Sea oil and gas infrastructure.

Projects in this round include:

  • innovation and research in pipeline cleaning
  • dry dock upgrades
  • feasibility studies
  • decommissioning pad investigation
  • specialist decommissioning equipment

Recognising the region’s success within this round of the DCF, head of energy industries at Highlands and islands Enterprise (HIE), Gavin MacKay, said:“The Decommissioning Challenge Fund awards demonstrate both the importance of the sector for the Highlands and Islands and the level of innovation being taken forward by businesses in the region which will make a material contribution to the industry’s efforts to reduce the overall cost of decommissioning.

"They build on the positive announcement from Scottish Government, that Lerwick, in Shetland, has been identified as the optimal UK location to establish an Ultra-Deep Water Port. Such a facility is vital to ensure Scotland attracts future large-scale decommissioning projects.”

Scotland’s Energy Strategy, launched last year, recognises that decommissioning offers significant economic opportunities and commits to enhance the capabilities and capacity in Scotland.

Alongside the Decommissioning Action Plan - launched by Highlands and Islands Enterprise and Scottish Enterprise in 2016 - the Fund will help Scotland's oil and gas sector make the most of decommissioning opportunities at home and abroad. 

In 2017/18 the DCF made grant payments of £4.8 million to 12 projects that helped to build Scottish skills and capacity to undertake decommissioning. The funding in 2017/18 leveraged a further £3.4 million from private funders and other sources, helping to support an estimated 200 jobs across the Scottish Economy and has accelerated studies for projects that expect to deliver £112 million of further port development.

A DCF Programme Board, drawn from government and industry, and chaired by the Deputy Director for Energy & Climate Change, is overseeing the delivery of the fund.


Lead Organisation

Project Name


Port of Cromarty Firth

Feasibility work for improving decommissioning Facilities

Funding for feasibility study to explore options for preparing facilities to increase the ability to retain decommissioning projects in Scotland.

Lerwick Port Authority

Engineering feasibility study for Dales Voe decommissioning pad.

Funding for the engineering Design phase of a decommissioning pad at Dales Voe.

Kishorn Port Ltd

Further Upgrade of Dry Dock and Associated Infrastructure

Consultancy work to support licencing and surveys. Upgrades and repairs to the dry dock and development of a drainage plan.

Ocean Kinetics Ltd - Shetland

Compact Work Class ROV and Tender Vessel

Research and Development for provision of a bespoke cutting and inspection service for decommissioning projects.

Pipeline Cleaning Solutions Ltd - Aberdeen

Decom Filtration


Funding for design, manufacture and testing for a new system for well bore cleaning and well abandonment.


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